Payroll Taxes: Overview

Summary

This practice note discusses the different types of payroll taxes that employers are subject to, based on the amounts employers pay to employees. This practice note provides guidance on how employees are distinguished from independent contractors, what payments to employees are subject to payroll taxes, the different tax rates, and the terms used in calculating the tax on different items of an employee's compensation. This practice note also provides information regarding the imposition, collection, and reporting of federal, state, and other payroll taxes.